Wing Man Wong Bought 7.4% More Shares In Pacific Legend Group

Whilst it may not be a huge deal, we thought it was good to see that the Pacific Legend Group Limited (HKG:8547) Chairperson of the Board, Wing Man Wong, recently bought HK$513k worth of stock, for HK$0.16 per share. However, it only increased their shares held by 7.4%, and it wasn't a huge purchase by absolute value, either.

View our latest analysis for Pacific Legend Group

The Last 12 Months Of Insider Transactions At Pacific Legend Group

The insider, Wai Keung Cheung, made the biggest insider sale in the last 12 months. That single transaction was for HK$519k worth of shares at a price of HK$0.22 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$0.15. So it may not shed much light on insider confidence at current levels.

Wing Man Wong bought a total of 11.64m shares over the year at an average price of HK$0.18. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Pacific Legend Group

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Pacific Legend Group insiders own 20% of the company, worth about HK$8.0m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Pacific Legend Group Tell Us?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Pacific Legend Group insiders are well aligned, and that they may think the share price is too low. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To that end, you should learn about the 4 warning signs we've spotted with Pacific Legend Group (including 3 which are potentially serious).

Of course Pacific Legend Group may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.